USDA's $2.4M Contract for Fresh Tomatoes Awarded to All-American Farms Inc. Amidst Full and Open Competition

Contract Overview

Contract Amount: $2,412,297 ($2.4M)

Contractor: All-American Farms Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-04-24

End Date: 2024-07-31

Contract Duration: 98 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009991/4100029796/TOMATO FRESH CTN-25 LB

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33487

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.4 million to ALL-AMERICAN FARMS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009991/4100029796/TOMATO FRESH CTN-25 LB Key points: 1. The contract focuses on fresh tomatoes, a key commodity for food donation programs. 2. All-American Farms Inc. secured the award through a full and open competition. 3. The contract value is $2,412,296.61 for 98 days of performance. 4. The sector is food manufacturing, specifically perishable prepared foods.

Value Assessment

Rating: good

The contract price of $2,412,296.61 for 200,000 lbs of fresh tomatoes appears reasonable given the market for perishable goods. The firm fixed price structure helps manage cost fluctuations.

Cost Per Unit: $12.06 per pound

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of competitive bidding for food donations aims to maximize the value of taxpayer funds allocated to these essential programs.

Public Impact

Ensures a supply of fresh produce for federal food donation initiatives. Supports agricultural producers and distributors involved in the food supply chain. Provides essential nutritional resources to beneficiaries of food assistance programs. The contract's short duration suggests a need for timely delivery of perishable goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires careful logistical planning and execution.
Potential for price volatility in fresh produce markets.

Positive Signals

Full and open competition likely yielded competitive pricing.
Firm fixed price contract provides cost certainty.
Award to a single vendor simplifies management for this specific commodity.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically for perishable goods. Government spending in this area supports critical food security and donation programs, often benchmarked against commercial wholesale prices for similar commodities.

Small Business Impact

While this specific award went to All-American Farms Inc., the contract was competed under full and open procedures, which allows for small business participation if they are capable of meeting the requirements. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

The Agricultural Marketing Service (AMS) within the Department of Agriculture is responsible for this procurement. Oversight would involve monitoring contract performance, delivery schedules, and quality of the tomatoes to ensure compliance with the firm fixed price agreement.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Perishability of goods
Market price volatility for fresh produce
Logistical challenges for timely delivery
Quality control of perishable items

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.4 million to ALL-AMERICAN FARMS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009991/4100029796/TOMATO FRESH CTN-25 LB

Who is the contractor on this award?

The obligated recipient is ALL-AMERICAN FARMS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-04-24. End: 2024-07-31.

What is the historical pricing trend for fresh tomatoes procured by the government for donation programs?

Historical pricing data for government-procured fresh tomatoes for donation programs would provide valuable context for assessing the current contract's value. Analyzing past awards, considering factors like volume, quality specifications, and delivery locations, can reveal trends in price fluctuations and identify potential cost savings or areas of concern. This benchmark is crucial for ensuring taxpayer funds are used efficiently and effectively in supporting food security initiatives.

What are the primary risks associated with procuring perishable goods like fresh tomatoes for federal programs?

The primary risks involve spoilage and quality degradation during transit and storage, potentially leading to waste and reduced nutritional value. Market volatility in fresh produce prices can also impact cost-effectiveness if not adequately managed through contract terms. Furthermore, logistical challenges in timely delivery to diverse distribution points can affect program beneficiaries. Robust quality control and efficient supply chain management are critical to mitigate these risks.

How effectively does this contract structure ensure the delivery of high-quality fresh tomatoes to intended recipients?

The firm fixed price contract, combined with full and open competition, aims to ensure quality by incentivizing the vendor to meet specifications to secure payment. However, effectiveness hinges on rigorous inspection and acceptance procedures by the Agricultural Marketing Service. Clear quality standards and performance metrics within the contract, coupled with diligent oversight, are essential to guarantee that the tomatoes delivered are fresh, meet nutritional requirements, and reach intended recipients without significant loss.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1424B0315

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 HIGH RIDGE RD, BOYNTON BEACH, FL, 33426

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,412,297

Exercised Options: $2,412,297

Current Obligation: $2,412,297

Actual Outlays: $2,411,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline